HOW EVER READY EAST AFRICA PLC GOT READY
For a while, it did not seem like Ever Ready East Africa plc was ready to face any competition in its business of sale of portable power solutions in Kenya. Now, it is facing good competition from a former shareholder and partner; and says half year figures to March 2017, it is time to take on competition.
According to the figures for the period released not too long ago, competition drove core turnover down by 19.5% to 241.6m Ksh but somehow, the saving grace was not just the leap in other income and sharp drops in some major expenses but more importantly, the sale of c its land to realise 397.3m Ksh gain.
Of course, the major decreases in cost heads helped greatly. Cost of sale went down ahead of core revenue drop by 31% to 168.9m Ksh; and finance cost dropped by 66.6% to 10.2m Ksh although overheads increased by 22.1 % to 142.3m Ksh.
However, much as they helped, the best Ever Ready could have hoped for was reduced loss for the period but it got more than that. It reported 351.1m Ksh profit before tax for the six months compared to 90.9m Ksh loss previously.
Besides, cash realised from the land sale not only landed the company in profit; it also brought in much needed cash with which reduce debt servicing liability as evidenced by the 66.6% drop in finance charges and more importantly, it handed it working capital surplus of 736.9m Ksh by March as against 320.8m Ksh deficit at the same time in 2016.
Now, says managing director, Jackson Mutua, Ever Ready is planning for more product launches especially household products within the next 12 months while consolidating the market for the turbo line of portable power solutions launched within the period under review.
EVER READY EAST AFRICA PLC: Half year Ksh m
2017 2016
Total income 672.5 300.8
Sales 241.6 300.0
Cost of sale 168.9 244.7
Other income 33.6 0.78
Land disposal gain 397.3 -
Overheads 142.3 116.5
Finance costs 10.2 30.5
Profit before tax 351.1 (90.9)
Working capital 736.9 (320.8)
According to the figures for the period released not too long ago, competition drove core turnover down by 19.5% to 241.6m Ksh but somehow, the saving grace was not just the leap in other income and sharp drops in some major expenses but more importantly, the sale of c its land to realise 397.3m Ksh gain.
Of course, the major decreases in cost heads helped greatly. Cost of sale went down ahead of core revenue drop by 31% to 168.9m Ksh; and finance cost dropped by 66.6% to 10.2m Ksh although overheads increased by 22.1 % to 142.3m Ksh.
However, much as they helped, the best Ever Ready could have hoped for was reduced loss for the period but it got more than that. It reported 351.1m Ksh profit before tax for the six months compared to 90.9m Ksh loss previously.
Besides, cash realised from the land sale not only landed the company in profit; it also brought in much needed cash with which reduce debt servicing liability as evidenced by the 66.6% drop in finance charges and more importantly, it handed it working capital surplus of 736.9m Ksh by March as against 320.8m Ksh deficit at the same time in 2016.
Now, says managing director, Jackson Mutua, Ever Ready is planning for more product launches especially household products within the next 12 months while consolidating the market for the turbo line of portable power solutions launched within the period under review.
EVER READY EAST AFRICA PLC: Half year Ksh m
2017 2016
Total income 672.5 300.8
Sales 241.6 300.0
Cost of sale 168.9 244.7
Other income 33.6 0.78
Land disposal gain 397.3 -
Overheads 142.3 116.5
Finance costs 10.2 30.5
Profit before tax 351.1 (90.9)
Working capital 736.9 (320.8)
Comments
Post a Comment